That's the part that most people just looking at the unemployment rates never seem to grasp is that if people aren't looking for work, they're not counted as unemployed. It creates a false sense of accomplishment and economic recovery. While it's not quite the jobless recovery that we had for years, it is a going to take a much longer time to recover than people ever thought.
Given population growth, we have to add 150-175K jobs each month just to maintain current unemployment levels. So at best, when 200K jobs are added in a month, we're really only doing better than before by about 50K jobs. In order to feel really secure, we'd need an economy churning out some 350-400 jobs added each month. Just don't expect that to happen in the near future; it's going to take something huge to accomplish that. And the Federal Reserve simply doesn't have enough tricks left in its bag because interest rates are already so low - too low.